1. Power

2. power elite part of the social historical context (conflict view) a social problem in itself

3. Formal structure of American democracy: Balance of powers ExecutiveLegislativeJudicial

4. What Mills sees happening Business and government “more intricately and deeply involved with each other” Military ascendancy; “enlarged and military state” Permanent-war economy; military capitalism; “military has benefited the most” (45)

5. Power Elite Mills defined it as a concentration of power among socially allied members of three key sectors: Economic: large corporations Political: especially the executive branch of the federal government Military

6. Power elite “ascendancy of the corporation’s man as a political eminence…” (Mills, 1956) “tied to their dominant locales…” “however, they…transcend the particularity of interest…[and] lace the three types of milieux together.”

7. Power elite Not a conspiracy; but official secrecy increases Institutional trends Social similarities and psychological affinities power elite “encroach” upon the old balances

8. The Power Elite acc. Domhoff The Power Elite Corporate Community Policy-Formation Organizations Social Upper Class

9. Domhoff on power and class Value assumptions: –Democracy in politics –Mobility in class Power elite dominates (“power to set the terms…not total control”) Corporate-conservative coalition vs. liberal-labor coalition This is a class conflict Domhoff’s website: http://sociology.ucsc.edu/whorulesamerica/ http://sociology.ucsc.edu/whorulesamerica/ They rule: http://www.theyrule.net/http://www.theyrule.net/

10. Case study: Enron

11. Enron and the power elite Kenneth Lay, former employee of old Federal Power Commission put Enron together in 1980s 1993: Wendy Gramm (wife of TX. Sen. Phil), chair of Commodity Futures Trading Commission; exempts energy derivative contracts from oversight. Weeks later, joins Enron Board. 1994: lobbies Securities and Exchange Commission for utility monopoly exemption, wins 1996: Federal Energy Regulatory Commission allows electricity deregulation; five years later California has electricity crisis 2000: Commodity Futures Modernization Act allows Enron to further its speculative activity in commodities from electricity to water

12. Enron and the power elite Spent $5.9 million on federal politics since 1989 President Bush’s largest contributor: $1 million for campaigns for governor and president Kenneth Lay had close personal ties –Played golf with Bill Clinton –George W. Bush called him “Kenny Boy” –Interviewed prospective cabinet members –Private meetings with Vice President Cheney on energy policy (GAO lawsuit)

13. Enron and the power elite Lawrence Lindsey, chief economic advisor Paid consultant to Enron during campaign Robert B. Zoellick, U.S. Trade Representative Paid Enron consultant Theodore W. Kassinger, Commerce Dept. General Counsel Paid Enron consultant William G. Schubert, Maritime Administrator Paid Enron consultant Harvey L. Pitt, Federal Energy Regulatory Commission Chairman Indirect ties, “hand picked” for position by Lay Thomas E. White, Secretary of the Army Former Vice Chairman, Enron Energy Services Marc F. Racicot, National Republican Party Chairman Enron lobbyist 35 administration officialsHeld Enron stock Members of current administration with former Enron ties

15. What about elections? Which sector of P.E. do we elect? Describe the process

16. What is the contradiction? P.E. vs. masses Elite interests vs. democracy

17. Social movements “sustained, organized, collective effort that focuses on some aspect of social change” (Blackwell Dictionary or Sociology, 262) usually arise when institutional (mainstream, legitimate) means of social change unavailable expression of grassroots democracy?